I literally had a mini client revolt this morning, with my larger share holders demanding immediate sale of SWHC. What could my rebuttal have been? “Wait until this whole thing blows over, SWHC will be hitting new highs in no time at all?”
Shit, I couldn’t muster up the arrogance to explain that SWHC is likely 100% undervalued. It doesn’t matter. They don’t want to make money in the stock. I imagine a lot of people are facing a similar dilemma today and will continue to ponder the meaning of being long a gun maker, post Newtown. Truth be told, I am happy to be done with it, even though it resulted in a massive, stinging, loss of more than 20%.
The only thing left to do is to move on and pick up the pieces.
With the proceeds, I doubled my BZH position and started a new one in HMC, as part of my long Japan thesis. Other Japanese stock of interest are NMR, TM and even SNE.
Bottom line: I fucked up and should’ve sold SWHC on Friday. Frankly, I was in a state of shock and really didn’t feel like addressing the issue. But I’m done with it now and will try my best to regain the losses.